An offshore company setup in Dubai is a great way to expand your brand and a target new audience. A lot of business owners and investors find the Dubai business climate agreeable in terms of business operations and leniency.
But more than the setup, the ongoing challenge the foreign investors have to deal with is managing the business itself, since they are not physically present to manage the offshore company themselves. If you are looking to set up your company in such location, here are some things that you need to know:
- Communication would be a challenge
What we are talking about here is not just the language barrier, but how the message is communicated. Since there are two parties situated in different locations and time zones, there will be delays in relaying the message from the headquarters to a specific branch. But this problem can be managed by agreeing and compromising on a time. Both parties would simply need to adjust to their schedule. Meetings and updates should also be brief and straightforward to avoid getting lost in the topic. Lastly, all conversations should be documented for reference of both parties.
- The rules and policies in the branch jurisdiction are quite different
Every business owner knows that when they set up a branch in a different city or country, they need to adhere to the policies of the location. It would be best if you will know what these policies are and how they will be impacting your business operations. You may need to make some adjustments with your policies and create a special rules and regulations for a specific branch based on the existing laws. But you may also need to check if you can incorporate some of your own rules in the mix.
- A different team strategy is required
Companies today are implementing a certain way of conducting things, especially managing team members. However, there are some traditions and norms that may not be applicable to a branch located in a different country. Be culturally-sensitive and know what are the effective ways of handling employees based on the locations tradition and working norms. You can implement generic working etiquette and policies, but be sure to know what will work for your offshore team.
- Manage expectations in terms of performance
A lot of business owners have high hopes for their offshore branch. But what they need to understand is that it will take time for a certain branch to reach a set goals, especially if it is newly established. Set realistic goals and make changes along the way based on what works.
Read more about managing offshore business here.